The Republic of Korea Bahk Jae-wan, Minister of planning and finance, said on Friday that the Association of Southeast Asian Nations (ASEAN) and China, Japan and South Korea (hereinafter referred to as ASEAN 10+3) should consider establishing a common economic zone to overcome the shortcomings of the financial system.

At a meeting in Seoul, Zai said that the recent financial crisis exposed the risk of relying on the single currency as the global reserve currency.

He said ASEAN 10+3 should consider creating a common economic zone and a common currency. But he warned that in view of the current crisis in the eurozone, a similar regional economic community should be considered more carefully beforehand.

The ASEAN 10+3 should consolidate the Chiang Mai Initiative (ASEAN 10+3 signed a multilateral currency swap agreement with a size of $120 billion), calling for the size of the mechanism to be doubled at least, giving it the role of preventing crises, and considering transforming it into a regional fund in the medium and long term, he said.

He also said, ASEAN 10+3 should jointly deal with cross-border capital flows.